Ann: Analyst site visit to Inca de Oro Chile , page-5

Hi all was hoping this thread would get a bit more input so I sat back a little but I guess that's the trouble sometimes we all sit back and nothing gets posted :-)

Ok I know you all feel I'm a huge bull on PNA so for the sake of balance. I'll try hard to look at it with a critical eye, and pick out a few negatives as well as the positives that I know I seems to concentrate on more of most of the time when I post.


slide 2 - We need to remember that it is only 30kt per annum of copper for PNA.
slide 5 - is this a long time for pre strip?(memory of OZL comes to me here)
- 2nd last dot point I'm a little concerned.
- last dot point interesting - we need to watch for C1 cost blow-out.
slide 6 - deferred the u/g mine - good
slide 7 - good predicted C1 cash costs
slide 8 - last dot point - wording was "spin". It did not say what it was, but $10,000 50,000 .594% = $297M capital expenditure (or more than a 1/4 B)
slide 13 - $75m? Is this on top of the capex, if so, we need add another $44.5M to the cost for PNA.
slide 15 and 16 - really good that they are learning from Phu Kam. wooohoooo.
slide 17 - Some could see it as a long time to wait for 30kt per annum of copper. I'm not one of them :-)
slide 22 - 2.7mt of copper (in total) is good - but the grade is a little (I'll be kind) off of great.

The capital expenditure is about the same as per tonne for ozl's P Hill. (100,000TPA for $1Bill) - there's did blow out to $1.3Bill due to infrastructure expense.

Cheers.